"Tencent to Acquire Nexon for 20 Trillion Won," Reports Say
Chinese Media Responds: "No Deal Discussions Have Taken Place"
The controversy over the truth has intensified after Chinese media published rebuttal reports just one day after foreign media outlets reported that Tencent, the Chinese IT giant, was pursuing an acquisition of Nexon, a leading company in the Korean gaming industry.
According to Chinese IT media such as ITHome on June 13, Tencent has never considered acquiring Nexon and is said to have never discussed any deal with the family of the late founder, Kim Jungju.
Previously, Bloomberg reported that Tencent was considering acquiring Nexon for $15 billion (20 trillion won) and had made contact with the family of the late Chairman Kim. Kim's widow, Yoo Junghyun, who serves as chair of the board, and their two daughters together hold about 67.6% of Nexon's holding company, NXC, giving them management control. NXC is the largest shareholder (44.4%) of Nexon Japan, which is listed in Japan. Securing control of NXC would allow the acquirer to own both Korean and Japanese gaming companies.
Tencent has often been mentioned as a strong candidate to acquire NXC shares. All of Korea's top five gaming companies are intertwined with Tencent through equity investments or game distribution. Tencent is the second-largest shareholder of Shift Up and Netmarble, and also holds stakes in Krafton (13.86%) and Kakao Games (3.89%). When the government attempted to sell NXC shares (worth 4.7 trillion won at the time) in December 2023, Tencent was also mentioned as a potential buyer. The family of the late Chairman Kim, facing an inheritance tax burden of about 6 trillion won on inherited assets worth around 10 trillion won, paid a portion of the NXC shares to the government in lieu of taxes.
Amid ongoing speculation about Tencent's acquisition of Nexon, a Nexon representative stated, "We cannot comment on market rumors or speculation."
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